The warehouse Receipt System covers the following groups of agricultural commodities: Cereals and Pulses (maize, beans, rice, green grams), Coffee, Nuts & oils (Macadamia, and coconut), Fiber crops (cotton), Livestock products (processed meat & fish), Processed milk, horticulture products (Potatoes) and industrial crops (Pyrethrum).
Other crops will be included with time.
The farmer can access finance from various financial institutions e.g. Banks and Sacco's, access inputs as well as trade the receipt to interested buyers.
A receipt is provided to the depositor upon depositing the agricultural commodities in the warehouse will cost Ksh 100. However, the warehouse operator charges for drying. Weighing, grading and storage competitively.
Warehouse operators are responsible for the safety and quality of commodities deposited in their warehouses. Once commodities are deposited at the warehouse, it is the responsibility of the warehouse operator to ensure quality and quantity of commodities. This is done under the supervision of the council. The commodities remain the property of the depositor until sold.
Marketing of farmers produce will be the collective responsibility of the farmer, warehouse operator and the council. The council will ensure depositors get access to information to enable informed decision making. The warehouse receipt (WRS) which are negotiable and transferable will be mainly traded at the Kenya National Multi-commodity Exchange (Komex) thereby providing a national and international platform for efficient and transparent price discovery and marketing system.
The council will negotiate with participating financial institutions to develop affordable financial credit and products that are farmer friendly. Terms, conditions and costs of the loans will be disclosed to the farmer who will then make a voluntary decision to take or reject the offer.